How and Why is Neutral Fair Value Accounting Hindered in Banks: A South African Case Study

2012 ◽  
Author(s):  
Phillip de Jager
Keyword(s):  
South African ◽  
Fair Value ◽  
Fair Value Accounting

On theoretical engorgement and the myth of fair value accounting in China: a reply

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kathryn Bewley ◽  
Cameron Graham ◽  
Songlan Peng
Keyword(s):  
Accounting Standards ◽  
Movement Analysis ◽  
Fair Value ◽  
Research Approach ◽  
Fair Value Accounting ◽  
Political Factors ◽  
Content Type ◽  
Accounting Research

PurposeThis article is a reply to “On theoretical engorgement and the myth of fair value accounting in China” Nobes (2019) from the authors of “Adaptability to fair value accounting in an emerging economy: A case study of China's IRFS convergence” (Peng and Bewley, 2010) and “The Winding Road to Fair Value Accounting in China: A Social Movement Analysis” (Bewley et al., 2018).Design/methodology/approachThis article engages directly with the arguments of the criticism.FindingsThis article argues that the author of the commentary misunderstands the purpose, content and findings of both papers. By providing only a narrowly focused technical analysis of the new Chinese accounting standards, the author fails to see that their qualitative research approach reveals important, complex social and political factors at play in China's attempts to adopt modern international accounting principles. The commentary expresses a view that accounting is a neutral technology that needs only to be clearly defined and enumerated to be correctly implemented, whereas this research takes a much broader and deeper perspective. The authors seek to understand how China was able to successfully adopt fair value accounting standards in 2006, whereas an earlier attempt to introduce fair value in 1998 had led to abuse of fair value measurements and the eventual repeal of fair value regulations in 2001.Practical implicationsThis article helps clarify the purpose of qualitative accounting research, the role of theory in such research and the usefulness of theory in describing and explaining empirical case facts related to changes in accounting standards, particularly in an international context.Originality/valueThis article contributes to a better appreciation of qualitative accounting research.

Fair value accounting implementation challenges in South Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anuradha Pandya ◽  
Wayne van Zijl ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
South African ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Perceived Usefulness ◽  
Developing Economy ◽  
Fair Value Accounting ◽  
Extensive Experience ◽  
Content Type

PurposeThe objective of this research is to explore the challenges being encountered when applying and implementing fair value accounting requirements, focusing specifically on the determination of fair value per International Financial Reporting Standards (IFRS) 13: Fair value measurement (IFRS 13) in the South African capital market.Design/methodology/approachData are collected from 20 detailed interviews, primarily with preparers and interpretively analysed to identify how individuals internalise the requirements of IFRS 13 and the challenges associated with its application. The researchers focus specifically on South Africa because of its status as a developing economy and, at the same time, its extensive experience in applying IFRS.FindingsSouth African preparers appear reluctant to change from a conventional cost-based measurement approach to one grounded in fair value. Primary concerns include the perceived usefulness of fair value accounting and its conceptual appropriateness, given its perceived de-emphasis of the traditional stewardship role of financial reporting. Related challenges to the application of IFRS 13 include concerns about the cost of determining fair value; the inherent subjectivity of fair value measures and the practical difficulty of calculating fair values when markets are not efficient or where business environments are complex and dynamic where Level 1 inputs are not widely available for all assets and liabilities. These challenges encourage preparers to choose accounting policies, which minimise the use of fair value or apply the provisions of IFRS 13 legalistically.Research limitations/implicationsData are collected from a group of respondents from a single developing economy. Additional research on the application of IFRS 13 in other developing markets will be required to conclude on the relevance of economic, cultural and social factors for the understanding and implementation of new accounting standards by practitioners.Practical implicationsStandard setters and regulators cannot assume that new accounting standards will be interpreted and applied as intended. Even when compliance with IFRS is mandatory, preparers have considerable discretion when it comes to operationalising accounting prescriptions. Unless the challenges raised by preparers are addressed, misapplication of IFRS is likely to continue.Originality/valueThe research makes an important empirical and practical contribution by providing primary evidence on the operationalisation of IFRS 13 in a novel setting. It complements earlier research which has focused primarily on the conceptual/theoretical dimension and on American and European perspectives.

The Socio-Economic Challenges of South African Indigenous Musicians: A Case Study of Venda-Based Vho-Ntshengedzeni Mamphodo

2019 ◽  
Vol 29 (1) ◽  
Author(s):  
N G Mugovhani ◽  
Lebogang Lance Nawa
Keyword(s):  
South Africa ◽  
South African ◽  
Empirical Data ◽  
Cultural Policy ◽  
Qualitative Case Study ◽  
Arts Management ◽  
Black South African ◽  
Indigenous Music ◽  
Entire Country

This article discusses and raises awareness about the socio-economic plight of indigenous musicians in South Africa. Through a qualitative case study of the Venda musician, Vho-Talelani Andries Ntshengedzeni Mamphodo, dubbed the “Father of mbila music,” the article highlights the fact that the welfare of Black South African artists, particularly indigenous musicians in South Africa, is generally a precarious affair. Their popularity, at the height of their careers, sometimes masks shocking details of exploitation, neglect, and the poverty they are subjected to, which are exposed only after they have died. Empirical data identifies this as a symptom of, among other things, cultural policy and arts management deficiencies in the promotion of indigenous music. The article aims to find ways to redress this unfortunate situation, which is partially a product of general apathy and scant regard that these artists have perennially been subjected to, even by their own governments, as well as some members of their societies. All these factors mentioned are compounded by ignorance on the part of South African artists. Part of the objective of this study was to establish whether the exposition of the Vhavenda musicians is a typical example of all Black South African indigenous musicians and, if this is the case, whether the suggested ways to redress this unfortunate situation could contribute to or play a role in alleviating the plight of such artists in the entire country.

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